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India B2B e-invoicing

India introduced mandatory B2B government pre-clearance electronic invoicing from 1 October 2020, completing the phased implementation by 1 April 2021. The latest Indian e-invoice threshold is ₹20 crore since April 2022 but will drop to ₹10 crore in October 2022. There are plans with the Central Board of Indirect Taxes to half again the e-invoice threshold to 5 crore in January 2023.

The regime includes submission of draft sales invoices to the Goods and Services Tax Network (GSTN), the government portal, for checking and validation. Indian GST was introduced in 2017.

Indian B2C e-invoices

For B2C invoices, a QR Code must be included in any invoice by a supplier with an annual turnover above ₹500 crores (approx: €57m; USD67m). Indian e-invoicing is administered by the Central Board of Indirect Taxes & Customs (CBIC), which also oversees the operations of India’s Goods and Services Tax.

India introduced e-way bills in April 2018 as digital notifications of goods movements. Check VAT Calc’s global live VAT invoice transaction and e-invoice reporting tracker to see where else real-time submissions of invoices is being implemented.

Invoice Registration Portal IRP for e-invoices clearance

The steps to issue an Indian e-invoice are as follows:

  • Any draft e-invoice must firstly be transmitted to the Invoice Registration Portal (IRP), which may be done by an Application Programming Interface (API) through a JSON file.
  • The IRP performs basic validation checks on the invoice:
    • Complete invoice details
    • Checks supplier’s and custom’s GST identification numbers (GSTIN)
    • Checks invoice number and date; and
    • Verifies not a duplicate invoice
  • The IRP then issues:
    • a unique Invoice Reference Number (IRN); 
    • a unique Quick Response code (QR Code). This is a square matrix bar code which provides a URL address for electronic readers to access information at the IRP about the invoice. The QR code is used by any party to check the invoice entry in the IRP.; and
    • an IRN e-signature.
  • The invoice and QR code are then shared with the customer by the invoice supplier. The customer must agree to the details.  The supplier and customer must agree on the format to share the invoice as it is not currently available within the IRP. Typically, it is done by PDF or paper copy invoices.
  • The invoice and QR code are also send to the GSTN and the National Informatics Centre (NIC) to ensure all data is reconciled.

VAT Calc’s in real-time global Calculator and Auditor  services produce instant and accurate tax calculations into your ERP, billing, e-commerce or e-invoicing systems.

Asia Pacific e-invoicing

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